User Account

All Pages

Income elasticity of demand for the product a

Assignment Help Microeconomics
Reference no: EM132542191

When income goes up from $20,000 to $30,000, demand for Product A is going up from 300 to 400. The price of the Product A is $200. However demand for Product B is going down from 100 to 50. The Price of the Product B is $10.

1) Is the product A normal goods or inferior goods?

2) Calculate income elasticity of demand for the product A, using the mid-point approach

3) Is the Product B normal or inferior goods?

4) Calculate income elasticity of demand for the Product B, using the mid-point approach

Reference no: EM132542191

Questions Cloud

Purchase a taxi medallion : New York City restricts the number of taxi medallions. As a result of the restrictions the taxi industry is surprisingly profitable. However, it is currently
Main types of resource ownership : What are the four main types of resource ownership, define each type of ownership.
Calculate cross elasticity of demand : When price of Coke rises from $5 to $7, quantities demanded for Coke falls from 1,000 to 800, and quantities demanded for Pepsi rises from 300 to 400
Economic incentives backfire by samuel bowles : Read the article of When Economic Incentives Backfire by Samuel Bowles at the following
Income elasticity of demand for the product a : The price of the Product A is $200. However demand for Product B is going down from 100 to 50. The Price of the Product B is $10.
What is the utility-maximizing quantity : Price of beer is $2 per unit. Using the following data in the table, calculate MU, MNU and TNU of beer.
Leaders and dominant players : Do you think that having signature products and services will make certain firms industry leaders and dominant players in their respective markets?
Characterize the effective allocations of economy : An economy is composed of two industries x and y, one labour market L and two consumers A and B. The industry includes a firm whose production function
Describe the business environment : Describe the business environment in the city or country that you live in. You should explain whether the business environment encourages or inhibits business a

Reviews

Write a Review

Microeconomics Questions & Answers

  Impact of monetary and fiscal policy on consumer spending

In 2001.3, the Bush Administration directed the Treasury to send checks of $300 to $600 to most taxpayers as an ‘‘advance'' payment on the 2002 tax reduction.

  What is your evaluation of announced free-trade direction

Suppose that a country announces that it is moving toward free trade by reducing its tariffs on intermediate inputs while maintaining its tariffs on final goods

  Differentiate parametric from nonparametric tests

Nursing Research - Differentiate parametric from nonparametric tests in terms of assumptions, outcomes, and desirability.

  What factors would you look for in the future to signal

The material in this chapter did not focus on different methods of predicting inflation because the core rate has changed very little since 1982.

  National debt without refinancing-raising taxes

Normal 0 false false false EN-US X-NONE X-NONE Suppose the federal governm..

  Graph the atc curves for given plant

The table shows the production function of Bonnie's Balloon Rides. Bonnie's pays $500 a day for each balloon it rents and $25 a day for each balloon operator.

  Elaborate on the costs and benefits of the policy

In 1980, automobile manufacturers in the United States asserted that import quotas be instituted on foreign-produced vehicles marketed in the United States.

  Fixed proportions production function

Suppose that a company has a fixed proportions production function that requires it to use two machines and one worker to produce 1000 units per hour. Explain why the cost per hour of producing 1000 units is 2v+w (where v is the hourly rent for the m..

  What is an injection into the circular flow

Name two withdrawals from the circular flow. What is an injection into the circular flow? When, in theory, is an economy in equilibrium?

  Could justus sue successful for payment for entire contract

Investment rejects some of the furnishings because they do not match the plans, and subsequently refuses to allow Justus to finish the work or to col¬lect payment. Could Justus sue successfully for payment for the entire contract.

  Why are some firms large and other firms small

Why are some firms "large" and other firms "small"? Use the concepts of "coordinating costs" in your answer

  Does the herb saint-john-wort relieve major depression

Saint-John's-wort and depression. Does the herb Saint-John's-wort relieve major depression? Here are some excerpts from the report of a study of this issue.24 The study concluded that the herb is no more effective than a placebo. "Design: Randomiz..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd